Originator helps 36 000 families buy homes
OCTOBER was a record month for mortgage origination group BetterBond Home Loans, with more than 3 600 home loans being formally granted to home buyers for whom the group had submitted applications to the banks.
“That brought the total number of families we have helped to acquire homes over the past year to more than 36 000,” says BetterBond chief executive Shaun Rademeyer.
Also, the value of the bonds granted through the group last month was more than R3 billion – or about 25 percent of the monthly value of bonds being registered by the Deeds Office.
“It also reveals a healthy recovery in the property market since the 2009 recession, when bond approval rates plummeted and we were able to secure only about R1bn worth of bonds a month for our clients.”
At the time, according to the Deeds Office, t he value of bonds registered nationally was only about R5bn a month – down from a high of about R32bn a month during the boom years, when BetterBond was achieving about R6bn in grants a month.
Deeds Office figures show that more than R10bn in mortgages are being registered each month.
The figure has been growing for two years, and all indications are that October’s final figure will have been the highest in the past five years, says Rademeyer.
However, the rate of growth in total household mortgage balances is now only about 2.7 percent a year, so BetterBond is well ahead of the curve, having achieved a 21 percent year-on-year growth in the value of grants secured in the 12 months to the end of August – and a 23.85 percent year-on year-growth for the 12 months to the end of last month.
“Our latest statistics show that our initial decline rate (the percentage of applications refused by the first lending institution to which they are submitted) showed a yearon-year drop of almost 9 percent at the end of last month, to only 38 percent of applications submitted.
“At the same time, the ratio of applications declined by one bank but approved by at least one other showed a year-onyear increase of 18 percent at the end of last month, resulting in a 9.5 percent increase in the company’s average approval ratio to just over 75 percent.”